LITTLE END ROAD INDUSTRIAL ESTATE EATON SOCON, ST NEOTS HUNTINGDON, PE19 8JH - MULTI LET INDUSTRIAL/TRADE COUNTER INVESTMENT OPPORTUNITY - Allsop
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LITTLE END ROAD INDUSTRIAL ESTATE EATON SOCON, ST NEOTS HUNTINGDON, PE19 8JH MULTI LET INDUSTRIAL/TRADE COUNTER INVESTMENT OPPORTUNITY
LITTLE END ROAD INDUSTRIAL ESTATE
EATON SOCON, ST NEOTS
HUNTINGDON, PE19 8JH MULTI LET INDUSTRIAL/TRADE COUNTER INVESTMENT OPPORTUNITY
Outline for indicative purposes only.
INVESTMENT CONSIDERATIONS PROPOSAL
■■ Modern industrial estate located in the principal ■■ 4 Industrial/Trade Counter units let to Howden, ■■ We are instructed to seek offers in excess of
industrial area of St Neots, a suburb of Huntingdon NDM Roofing & Cladding, Saint Flooring and Tsunami £3,150,000 (Three Million One Hundred and Fifty
■■ Excellent access to the A428, A1 and M1 Axis (Office Design) totalling 41,510 sq ft (3,856.4 sq m) Thousand Pounds), subject to contract and exclusive of
■■ WAULT of 7.15 years to expiry (5.20 years to break) VAT for the Freehold interest. This reflects an attractive
■■ Strong industrial area with national covenants
Net Initial Yield of 6.40% and a low capital value
including: Cath Kidston, Hotel Chocolat, B&Q, ■■ Numerous asset management opportunities with
of £75.88 psf, after deductions for purchaser’s costs.
B&M and Screwfix upcoming rent reviews in 2019, 2021 and 2023
■■ The units occupy two prominent sites both with ■■ Freehold DATA ROOM
excellent road frontage and accessibility ■■ Site area of approximately 2.17 Acres (0.87 Hectares), For access to the Allsop Marketing Data Room please use the
■■ Fully let with a total effective rent of £214,750 p.a. providing a site cover of 43% following link: https://datarooms.allsop.co.uk/register/neots
LITTLE END ROAD INDUSTRIAL ESTATE
EATON SOCON, ST NEOTS
HUNTINGDON, PE19 8JH
MULTI LET INDUSTRIAL/TRADE COUNTER INVESTMENT OPPORTUNITY
A1(M) YORK
●
BLACKPOOL LEEDS
● M55 M56 HULL
●
M62
M61 M1 M180
M18
MANCHESTER
LIVERPOOL ●
● M56
SHEFFIELD
●
LINCOLN
●
LOCATION
M1
St Neots is a market town in Cambridgeshire situated on the banks of the
M6 NOTTINGHAM
● River Ouse, 15 miles (24 km) west of Cambridge, 25 miles (40 km) south of
Peterborough and 50 miles (80 km) north of London. St Neots is the largest
town in Cambridgeshire with a population of approximately 40,000.
LOUGHBOROUGH
● St Neots lies adjacent to the A1 which connects the town to London in the
south and Peterborough in the north, whilst the nearby A41 provides access
NORWICH
LEICESTER ● to the Midlands and East Anglia. St Neots benefits from access to the East
M42
● PETERBOROUGH Coast Mainline which provides half hourly journeys into London Kings Cross
with a fastest journey time of 36 minutes. The town is situated within a 45
BIRMINGHAM A1(M) minute drive of Luton Airport and Stanstead Airport.
ST NEOTS
M6
NORTHAMPTON BURY ST
M5 ● EDMUNDS
CAMBRIDGE ●
M1 ● CAMBRIDGE
WORCESTER
● MILTON KEYNES INTERNATIONAL TRAVEL TIMES
M6 A1(M)
M50 ●
STANSTEAD CAR MILES RAIL MINUTES
LUTON
CHELMSFORD Bedford 10.8 Huntingdon 7
OXFORD ●
● Cambridge 20.7 Peterborough 23
M25
EA M48 Peterborough 31.6 Stevenage 42
HEATHROW KINGS CROSS London Kings Cross/ 70
LONDON
M4 M4 London 56.2
CARDIFF St Pancras International
● M32
BRISTOL
● BATH M2 AIR MINUTES
● M25
MAIDSTONE M20 Cambridge International Airport 23.8
M5 M3 ●
M23 London Luton Airport 32.2
London Stanstead Airport 43.5
London Heathrow Airport 65.1
M27
●
SOUTHAMPTON A3(M)
●
PORTSMOUTH
EXTER
●
LITTLE END ROAD INDUSTRIAL ESTATE
EATON SOCON, ST NEOTS
HUNTINGDON, PE19 8JH
MULTI LET INDUSTRIAL/TRADE COUNTER INVESTMENT OPPORTUNITY
PETERBOROUGH
A43 A134
CORBY A10
A1(M)
A605
ECONOMY
A141
Huntingdonshire features a network of market towns, including THETFORD
A14 A1065
Huntingdon, St Ives, St Neots and Ramsey and key natural assets, KETTERING
including the The Great Ouse River. Huntingdon is the primary
A14
service centre and an important employment area. St Neots is the
A508
largest centre by population in the District and is also home to HUNTINGDON
an established business base, many of which employ substantial
WELLINGBOROUGH
numbers and
are focused on the manufacturing sector or are part of well- A14 A14
established supply chains. The quick recovery of the economy A6 NEWMARKET
BURY ST
NORTHAMPTON EDMUNDS
beyond pre-recession levels points to a resilience within the ST NEOTS A428
private sector and therefore the business base of Huntingdonshire. CAMBRIDGE Cambridge
A428
International
Huntingdonshire’s population is larger than any other District in
Cambridgeshire and is projected to grow to 209,000 by 2036. Its A421 A11
population is skilled, healthy and productive. The unemployment rate A134
and the proportion of the population claiming benefits is lower BEDFORD A1
M1
in Huntingdonshire than the UK average.
A505
SITUATION
MILTON KEYNES
The property is situated on a prominent roadside position within the
centre of the East Socon Industrial Area, an established industrial
A10
area a mile north of the A1 dual carriageway. Immediately alongside LETCHWORTH
A11
the subject property is a densely populated housing estate and
A5
recently constructed care home, which is accessed via Nelson Road,
immediately to the north. The property is located 2.3 miles from
STEVENAGE
the centre of St Neots and 12.4 miles from Huntingdon. The area London Stanstead
has also attracted a number of warehouse operations for national LUTON BISHOP’S BRAINTREE
A418 A120
retailers including Cath Kidston, B&Q, Hotel Chocolat, Jewson and STORFORD
A12
Screwfix.
M11
AYLESBURY
LITTLE END ROAD INDUSTRIAL ESTATE
EATON SOCON, ST NEOTS
HUNTINGDON, PE19 8JH
Little End Road, Eaton Socon, St. Neots, Huntingdon PE19 8JH
MULTI LET INDUSTRIAL/TRADE COUNTER INVESTMENT OPPORTUNITY
25
ESS NE
LS 19
O
N
RO
AD
25.2m
1
2
Nelson Lodge
23
21b b-c
23a
21a
END ROAD
RESIDENTIAL
LITTLE
10
25
1
El Sub Sta 16
3
0m 10m 20m 30m
1
© Crown Copyright, ES 100004106. For identification purposes only.
FORGE
Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
CARE HOME
CLOSE
SITE AREA
The property comprises a total site area of 2.17 acres (0.87 Hectares),
split between the following demises:
n UNITS 21A & 21B – 1.17 acres (0.47 Hectares) [Site Coverage: 43%]
n UNITS 23A & 23B-C – 1.00 acres (0.40 Hectares) [Site Coverage: 45%]
TENURE
Freehold.
DESCRIPTION
The property comprises 4 units occupying two sites Units 23A and 23B-C are arranged over ground floor only
fronting Little End Road. to provide two modern self-contained industrial trade
Units 21A and 21B are arranged on ground floor only counter units totalling 19,402 sq ft (1,802 sq m). Both units
to provide two modern industrial units totalling benefit from single storey office/staff accommodation
22,108 sq ft (2,054 sq m) together with an extensive to the front, with car parking for some 20 vehicles. Unit
yard area and parking for some 32 vehicles. Unit 21A 23 B-C has an extensive yard area, whilst both units
benefits from a Landlord mezzanine totalling 499 sq ft have an eaves height of 4.34m and 4.13m respectively
(46.3 sq m) currently utilised as ancillary office/staff and 4 roller shutter doors.
accommodation. Both units have an eaves height of
5.15m and 3 roller shutter doors.
LITTLE END ROAD INDUSTRIAL ESTATE
EATON SOCON, ST NEOTS
HUNTINGDON, PE19 8JH
MULTI LET INDUSTRIAL/TRADE COUNTER INVESTMENT OPPORTUNITY
ACCOMMODATION & TENANCIES
Unit Tenant Area Area Lease Lease Break Rent Effective Effective ERV ERV Comments
(sq m) (sq ft) Start Expiry Review Rent Rent (£ pa) (£ psf)
(£ pa) (£ psf)
21 A Tsunami Axis Limited 906.5 9,757 09/07/18 08/07/21 09/07/19 £51,250 £5.46* £51,250 £5.50* Current Rent: £32,500 p.a.
Fixed increase to £51,250 p.a. on 09/07/2019, to be topped up by the
Vendor
Landlord Mezzanine of 499 sq ft (46.4 sq m)
Rent deposit £15,375 incl VAT
Tenant only break option, subject to 3 months notice period and
penalty of £10,250
Service charge cap of £2,000 in Years 1 & 2, rising to £2,200 in Year 3
Lease outside 1954 Act Protection
21 B Saint Flooring South 1,147.4 12,351 06/07/18 05/07/28 06/07/23 06/07/23 £63,000 £5.10 £ 67,900 £5.50 Current Rent: £31,500 p.a.
Limited Fixed increase to £63,000 on 06/07/2019, to be topped up by the Vendor
Additional fixed increase to £64,843 p.a. on 06/07/2020.
Rent deposit £18,900 incl VAT
Tenant Only Break Option, subject to 6 month notice period
Lease outside 1954 Act Protection
23 A NDM (Metal Roofing 803.6 8,650 27/10/16 27/10/26 27/10/19 £47,500 £5.50 £47,500 £5.49 Lease subject to additional rent reviews in 2022 & 2025
and Cladding) Rent deposit £14,250
Limited Lease subject to license to alter
Lease outside 1954 Act Protection
23 B & C Howden Joinery 998.9 10,752 12/01/16 11/01/26 12/01/21 £53,000 £4.93 £59,100 £5.50 Lease subject to Schedule of Condition
Properties Limited
Total 3,856.4 41,510 £214,750 £5.17 £222,650 £5.50
*Rent psf rates assumes 0.25% on mezzanine accommodation.
COVENANT INFORMATION
HOWDEN JOINERY NDM (METAL ROOFING SAINT FLOORING TSUNAMI AXIS
PROPERTIES LIMITED & CLADDING) LIMITED SOUTH LIMITED LIMITED
(Company Reg: 05656171) (Company Reg: 06252574) (Company Reg: 08430941) (Company Reg: 03752563)
Rent: £53,000 per annum (25% of income) Rent: £47,500 per annum (22% of income) Rent: £31,500 per annum (29% of income) Rent: £32,500 per annum (24% of income)
Risk Disk: 100 Risk Disk: 77 Risk Disk: 77 Risk Disk:- 88
December December December March March March January January January January January January
2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017
Turnover £45,202,000 £47,882,000 £53,759,000 Turnover - - - Turnover - - - Turnover £27,399,592 £31,499,527 £31,547,694
Pre-Tax Pre-Tax Pre-Tax Pre-Tax
£228,000 £501,000 £1,532,000 - - - - - - £778,433 £1,803,948 £1,209,437
Profit Profit Profit Profit
Total Net Total Net Total Net Total Net
£-312,000 £-381,000 £234,000 £193,315 £1,215,935 £1,154,518 £79,325 £145,787 £328,263 £991,548 £1,125,929 £981,654
Worth Worth Worth Worth
LITTLE END ROAD INDUSTRIAL ESTATE
EATON SOCON, ST NEOTS
HUNTINGDON, PE19 8JH
MULTI LET INDUSTRIAL/TRADE COUNTER INVESTMENT OPPORTUNITY
ASSET MANAGEMENT INVESTMENT MARKET TRANSACTIONS
The investment provides the purchaser with the
opportunity to undertake a number of asset Date Address Area (sq ft) WAULT Price (£M) NIY Cap Val (£psf)
management initiatives in order to enhance the
rent and in turn create further value. September 18 Stukeley Meadows Industrial Estate, Huntingdon 29,125 5.2 £3.255M 5.46% £112
August 18 Units 10-15 Petersfield Business Park, Petersfield 26,718 7.3 £3.822M 5.00% £143
June 18 33 St Peters Road, Huntingdon 16,668 9.8 £2.65M 4.72% £159
April 18 Access 4:20, New Hythe Business Park, Aylesford 47,856 9.3 £7.96M 4.60% £166
LEASE REGEAR/RENEWALS
April 18 Doranda Way Industrial Park, West Bromwich 152,311 3.4 £14.68M 5.18% £96
Unit 21A is subject to a tenant only break option
in July 2019 providing the immediate opportunity April 18 Sky Business Park, Egham 27,960 3.7 £6.525M 4.55% £233
to extend the term certain by removing the break
option or regearing the lease. April 18 Mill River, Enfield 93,786 2.3 £18M 4.00% £192
A1(M)
A14
KETTERING A141
A11
A508 A14
HUNTINGDON A10
A134
RENTAL GROWTH A45
A14 HUNTINGDON
The current rents are let at modest levels having A1
Prime Rents: £7.50 psf
all commenced within the last 3 years. Over 45%
BURY ST
Availability: 440,000
of the income is subject to rent review in the next NORTHAMPTON
A509
ST NEOTS A14
EDMUNDS A14
2.5 years. The property is therefore well placed for A6 A428
future rental growth through the completion of CAMBRIDGE
rent reviews in 2019, 2021 and 2023. BEDFORD
A134
A11
Prime Rents: £7.75 psf
A508 BEDFORD
M1 A422 Availability: 773,000
A5
A421 A1 A505
MILTON KEYNES MILTON KEYNES
CAPITAL EXPENDITURE
A6
M11
A505
Prime Rents: £8.50 psf
The investment provides the purchaser with the
opportunity to further enhance rental value through
A421
A10 Availability: A131
1,800,000
future refurbishment of the units. New build/ A5
refurbished industrial units in the wider Huntingdon
market are achieving rents in the region of £7.50 psf. STEVENAGE STEVENAGE COLCHESTER
BRAINTREE
A12
A418 LUTON Prime Rents: £9.75 psf
A120
A120 Availability: 50,000
AYLESBURY
ESTATE BREAK-UP
A1(M)
A414 A131 LUTON
A12
Prime Rents: £9.75 psf
The property provides the purchaser with the CHELMSFORD
opportunity to sell individual units to owner A10
A414 Availability: 244,600
occupiers at a premium. M25
A12
A130
M11
BRENTWOOD
M1 A406
A127
A12 ROMFORD BASILDON SOUTHEND-ON-SEA
A127
VAT
The property has been elected for VAT and
we would therefore expect the property to be
treated as a Transfer of Going Concern (TOGC).
EPC
Please refer to the Allsop Marketing Data Room
for further information.
PROPOSAL
We are instructed to seek offers in excess of £3,150,000 (Three Million One Hundred and Fifty Thousand Pounds), subject to
contract and exclusive of VAT for the Freehold interest. This reflects an attractive Net Initial Yield of 6.40% and a low capital
value of £75.88 psf, after deductions for purchaser’s costs.
For further information or to make arrangements for viewing please contact:
DATA ROOM
For access to the Allsop Marketing Data Room Jeremy Hodgson James Salmon Tom Dales
please use the following link: 020 7543 6709 020 7543 6880 020 7543 6866
https://datarooms.allsop.co.uk/register/neots jeremy.hodgson@allsop.co.uk james.salmon@allsop.co.uk tom.dales@allsop.co.uk www.allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to
be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties,
undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as
to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary
searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 09.18
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